by John Andrewartha.
First thing, set your WP site to network, there are some good docs on same in there wiki. Then you can setup categories with blogs per cat. Install the LTI module from the WP site.
At some point you will have to also replace the .htaccess file in WP to allow tredirects.
Check out http://sourceforge.net/apps/mediawiki/learningapps/index.php?title=LTI4Wordpress
Hope that helps
John